AU Optronics Corp's (
Loss narrowed to NT$777 million (US$22.5 million) from NT$1.2 billion a year earlier, in line with the company's forecast loss of NT$800 million. Fourth-quarter loss was derived by subtracting nine-month earnings from posted annual profit of NT$6.02 billion.
Fourth-quarter sales rose 6.4 percent to NT$15.96 billion after the average price of flat-panel monitors fell a third between June and January, boosting demand. Dell Computer Corp, the company's biggest customer, and rivals are also buying more flat screens because customers prefer them.
AU Optronics is operating at about 90 percent of capacity and can't meet demand, Executive Vice President Hsiung Hui said this month. The company plans to boost prices, he said.
The surge in demand will soon be met by increased supply, because AU Optronic's South Korean rivals Samsung Electronics Co and LG.Philips LCD have opened new plants, analysts said.
AU Optronics will open new factory this year that will boost shipments by half. The factory will use so-called fifth-generation equipment that cuts costs by increasing the number of screens cut from a single sheet of glass.
The company said shipments of flat monitors used with desktop computers will rise about two-fifths this year to 50 million units as users replace bigger cathode-ray tube displays, which consume more electricity and emit more radiation.
AU Optronics shares fell 2.7 percent to NT$22 on Friday. The stock has gained 7.8 percent this year, compared with a 14 percent increase the benchmark TAIEX Index.
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